For decades, India’s trade policy balanced economic openness with the protection of domestic industries. Under Prime Minister Narendra Modi’s leadership, that balance has increasingly shifted towards negotiated market access, export competitiveness and strategic economic partnerships. India’s combined goods and services exports reached approximately US$863.1 billion in FY2025–26. Although this growth cannot be attributed to free trade agreements (FTAs) alone, these agreements are creating new opportunities for Indian exporters, manufacturers, service providers and investors.The advantages go beyond reduced customs duties. Modern FTAs also address investment, professional mobility, regulatory cooperation and access to services markets.

Seven Agreements, Seven Sets of Advantages

1. Mauritius (2021): An Indian Ocean Gateway

India’s Comprehensive Economic Cooperation and Partnership Agreement (CECPA), effective April 2021, provides preferential access for 310 Indian product lines, alongside opportunities in services.

The advantages: Indian exporters receive improved access for qualifying products, while businesses in IT, financial services, education and tourism can benefit from services commitments. The agreement also strengthens commercial links with Mauritius, an established business and investment centre connecting India with the wider Indian Ocean region. 

The number of Indian tariff lines exported to Mauritius rose from 3,593 in FY2021–22 to 4,345 in FY2025–26, indicating greater product diversification.

2. United Arab Emirates (2022): More Competitive Indian Exports

The India–UAE Comprehensive Economic Partnership Agreement (CEPA), effective May 2022, provides preferential access across 97% of UAE tariff lines, covering approximately 99% of Indian exports by value.

The advantages: Reduced import duties make qualifying Indian jewellery, textiles, engineering products, chemicals and manufactured goods more price-competitive in the Emirates. Services commitments also create opportunities for Indian professionals and businesses.

India’s merchandise exports to the UAE reached approximately US$37.36 billion in FY2025–26. For the large Indian business community in the Gulf, the agreement supports opportunities in distribution, logistics, manufacturing and cross-border enterprise.

3. Australia (2022): Duty-Free Access Across the Market

The India–Australia Economic Cooperation and Trade Agreement (ECTA), operational since December 2022, now provides zero-duty access across 100% of Australian tariff lines for qualifying Indian goods.

The advantages: Indian garments, engineering products, pharmaceuticals and other manufactured goods can enter Australia without ordinary customs tariffs, subject to applicable origin requirements. The agreement also strengthens opportunities in services and professional exchanges.

India’s merchandise exports to Australia reached approximately US$7.28 billion in FY2025–26. The agreement is particularly relevant to Indian small and medium-sized exporters seeking access to a developed consumer market.

4. European Free Trade Association (2025): Trade Linked to Investment

The Trade and Economic Partnership Agreement (TEPA) with Switzerland, Norway, Iceland and Liechtenstein became operational in October 2025.

It provides concessions on 92.2% of tariff lines, covering 99.6% of India’s exports to these markets.

The advantages: Indian manufacturers gain preferential access for qualifying goods, while services commitments support opportunities for technology companies and professional service providers. Crucially, the agreement includes a commitment to promote US$100 billion in investment over 15 years, associated with an objective of creating one million direct jobs in India.

These are future investment and employment commitments, not achievements already realised.

5. United Kingdom (2026): Goods, Services, Professional Mobility

The India–UK Comprehensive Economic and Trade Agreement (CETA) entered into force on 15 July 2026, alongside a social security arrangement.

The advantages: Nearly 99% of Indian exports by value are eligible for duty-free access, benefiting textiles, leather, footwear, jewellery, engineering products and other sectors. Services provisions support cross-border business activity.

The accompanying Double Contribution Convention enables eligible employees temporarily working between India and Britain to avoid paying social security contributions in both countries for up to five years.

The UK government estimates that the agreement could increase annual bilateral trade by £25.5 billion in the long term. This is a projection, not an increase already achieved.

6. Oman (2026): New Opportunities for Labour-Intensive Industries

The India–Oman CEPA, effective June 2026, provides preferential access covering approximately 98% of Oman’s tariff lines.

The advantages: Indian textiles, leather products, jewellery, engineering goods, pharmaceuticals and agricultural products stand to benefit from reduced trade barriers. This is particularly important for labour-intensive industries, where even modest tariff reductions can influence competitiveness.

Oman’s location and port infrastructure also offer commercial opportunities for Indian businesses operating across the Gulf and neighbouring markets.

7. New Zealand (October 2026): A Pacific Opportunity

Signed in April 2026, the India–New Zealand FTA is scheduled to enter into force on 20 October 2026.

The advantages: The agreement provides for duty-free access across New Zealand’s tariff lines for qualifying Indian exports, including textiles, leather goods, footwear and manufactured products. It also supports closer cooperation in services, investment and professional mobility.

The agreement provides another route for Indian businesses to expand into Pacific markets. Its commercial results, however, will only become measurable after implementation.

The European Union: A Major Agreement Awaiting Implementation

The conclusion of India–EU FTA negotiations in January 2026 represents another significant development. Once implemented, the agreement is expected to provide preferential access for more than 99% of Indian exports by value.

The advantages: Indian textiles, leather goods, marine products, gems and jewellery, chemicals and other manufactured goods would gain improved access to European markets. Services provisions cover areas including IT, professional services, education and business services.

India has also retained protections for sensitive agricultural products, including dairy. However, the agreement is not yet operational, and its projected benefits should not be presented as realised outcomes.

What Next? India’s Trade Agenda Beyond 2026

Several negotiations could further expand India’s economic reach.

• The United States remains a priority, although bilateral trade talks have encountered difficulties over tariffs, market access and wider geopolitical disputes. Despite an interim framework announced in February 2026, a comprehensive agreement remains unresolved.
• Canada is pursuing negotiations towards a Comprehensive Economic Partnership Agreement, with both governments working towards an agreement by the end of 2026. The potential benefits span energy, critical minerals, technology, investment and services.
• Elsewhere, India is pursuing trade negotiations with Chile, Peru, Israel and the Eurasian Economic Union, alongside efforts to deepen its partnership with Australia and review existing arrangements with ASEAN.

From Market Access to Market Success

The economic case for FTAs is compelling: lower tariffs can improve export competitiveness, investment commitments can support industrial development, and services provisions can create opportunities for Indian professionals. Yet agreements alone do not guarantee results. Exporters must satisfy rules of origin, product standards and regulatory requirements. Domestic industries must become more productive, while smaller enterprises need the information and resources to enter unfamiliar markets. For the Indian diaspora, the expanding network offers opportunities to act as investors, entrepreneurs, professional collaborators and commercial bridges between India and their countries of residence. Under Modi’s leadership, India’s trade diplomacy has expanded its emphasis on market access, economic diversification and international partnerships.

The real measure of success will not be the number of agreements signed, but the extent to which they generate sustainable exports, productive investment, employment and stronger Indian enterprises.